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BURL vs. COST: Which Stock Is the Better Value Option?
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Investors with an interest in Retail - Discount Stores stocks have likely encountered both Burlington Stores (BURL - Free Report) and Costco (COST - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Burlington Stores is sporting a Zacks Rank of #2 (Buy), while Costco has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that BURL likely has seen a stronger improvement to its earnings outlook than COST has recently. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
BURL currently has a forward P/E ratio of 33.66, while COST has a forward P/E of 50.51. We also note that BURL has a PEG ratio of 1.37. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. COST currently has a PEG ratio of 5.41.
Another notable valuation metric for BURL is its P/B ratio of 15.75. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, COST has a P/B of 18.12.
These metrics, and several others, help BURL earn a Value grade of A, while COST has been given a Value grade of C.
BURL has seen stronger estimate revision activity and sports more attractive valuation metrics than COST, so it seems like value investors will conclude that BURL is the superior option right now.
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BURL vs. COST: Which Stock Is the Better Value Option?
Investors with an interest in Retail - Discount Stores stocks have likely encountered both Burlington Stores (BURL - Free Report) and Costco (COST - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Burlington Stores is sporting a Zacks Rank of #2 (Buy), while Costco has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that BURL likely has seen a stronger improvement to its earnings outlook than COST has recently. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
BURL currently has a forward P/E ratio of 33.66, while COST has a forward P/E of 50.51. We also note that BURL has a PEG ratio of 1.37. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. COST currently has a PEG ratio of 5.41.
Another notable valuation metric for BURL is its P/B ratio of 15.75. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, COST has a P/B of 18.12.
These metrics, and several others, help BURL earn a Value grade of A, while COST has been given a Value grade of C.
BURL has seen stronger estimate revision activity and sports more attractive valuation metrics than COST, so it seems like value investors will conclude that BURL is the superior option right now.